Today's changing electric power systems create a growing need for flexible, reliable, fast responding, and accurate answers to questions of analysis, simulation, and design in the fields of electric power generation, transmission, distribution, and consumption. The Flexible Alternating Current Transmission Systems (FACTS) technology program utilizes power electronics components to replace conventional mechanical elements yielding increased flexibility in controlling the electric power system. Benefits include decreased response times and improved overall dynamic system behavior. FACTS devices allow the design of new control strategies, e.g., independent control of active and reactive power flows, which were not realizable a decade ago. However, FACTS components also create uncertainties. Besides the choice of the FACTS devices available, decisions concerning the location, rating, and operating scheme must be made. All of them require reliable numerical tools with appropriate stability, accuracy, and validity of results. This dissertation develops methods to model and control electric power systems including FACTS devices on the transmission level as well as the application of the software tools created to simulate, analyze, and improve the transient stability of electric power systems. The Power Analysis Toolbox (PAT) developed is embedded in the MATLAB/Simulink environment. The toolbox provides numerous models for the different components of a power system and utilizes an advanced data structure that not only increases data organization and transparency but also simplifies the efforts necessary to incorporate new elements. The functions provided facilitate the computation of steady-state solutions and perform steady-state voltage stability analysis, nonlinear dynamic studies, as well as linearization around a chosen operating point. Applying intelligent control design in the form of a fuzzy power system damping scheme applied to the Unified Power Flow Controller (UPFC) is proposed. Supplementary damping signals are generated based on local active power flow measurements guaranteeing feasibility. The effectiveness of this controller for longitudinal power systems under dynamic conditions is shown using a Two Area-Four Machine system. When large disturbances are applied, simulation results show that this design can enhance power system operation and damping characteristics. Investigations of meshed power systems such as the New England-New York power system are performed to gain further insight into adverse controller effects. I would like to begin with a heartfelt thank you to Sandra for her love and encouragement toward my work and for making the decision to come to Morgantown in the first place. I thank my family for their support and inspiration that they have provided throughout my entire life and educational experience. This dissertation came into existence during my years as research assistant for Dr. Ali Feliachi, Electric Power Systems Chair Professor, in the Lane Department of Computer Science and Electr...